billHR10175Event Thursday, August 27, 2026Analyzed

To repeal section 338 of the Tariff Act of 1930 and nullify certain Presidential proclamations imposing a tariff or other duty pursuant to such section, and for other purposes.

Bearish

Summary

HR10175, introduced by Rep. Schneider (D-IL), seeks to repeal Section 338 of the Tariff Act of 1930 and nullify related Presidential tariff proclamations. This early-stage bill, referred to the House Ways and Means Committee, targets tariff protections that benefit domestic manufacturers and steel producers. If enacted, it would remove tariffs on imported goods, increasing competition for US industrial and steel companies like Caterpillar, Deere, Nucor, Steel Dynamics, and US Steel, potentially compressing margins and market share.

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Key Takeaways

  • 1.HR10175 targets tariff protections under Section 338 of the Tariff Act of 1930, which benefits domestic manufacturers and steel producers
  • 2.The bill is early-stage with 7 Democratic cosponsors, facing long odds in a Republican-controlled House
  • 3.If enacted, domestic industrial and steel companies like CAT, DE, NUE, STLD, and X would face increased import competition and margin compression
  • 4.No funding is authorized; the impact is purely regulatory through tariff removal
  • 5.The legislative path is lengthy and uncertain, with no near-term market impact expected

Market Implications

The immediate market impact of HR10175 is negligible given its early legislative stage and uncertain passage prospects. However, the bill signals a potential shift in trade policy if Democrats gain control. For now, domestic manufacturers and steel producers like Caterpillar, Deere, Nucor ($NUE), Steel Dynamics ($STLD), and US Steel face no near-term risk. Investors should watch for committee hearings or markup as indicators of momentum. The bill's impact would be bearish for these companies if it advances, as tariff removal would increase import competition and lower domestic pricing power.

Full Analysis

On August 27, 2026, Rep. Bradley Schneider (D-IL) introduced HR10175, a bill to repeal Section 338 of the Tariff Act of 1930 and nullify certain Presidential proclamations imposing tariffs under that section. The bill has been referred to the House Committee on Ways and Means, the primary tax and trade committee, and has 7 Democratic cosponsors. This is an early-stage bill with no committee action yet. The bill targets the legal basis for tariffs imposed under Section 338, which allows the President to impose duties on countries that discriminate against US commerce. Repealing this section would remove a key statutory authority for tariff imposition, effectively nullifying existing tariffs imposed under it. The bill does not authorize any funding; it is a regulatory change that removes tariff protections. The money trail is indirect: removing tariffs reduces the cost of imported goods, increasing competition for domestic producers. The primary beneficiaries of the current tariffs are domestic manufacturers and steel producers, who face less import competition. If tariffs are removed, these companies would face increased competition from foreign imports, potentially lowering prices and margins. The bill is in early stages with no hearings or markup scheduled. It faces significant hurdles in the Republican-controlled House, where trade protectionism has bipartisan support. The legislative path requires committee approval, House floor vote, Senate passage, and Presidential signature. Given the early stage and partisan sponsorship, passage is uncertain and likely years away if at all.

Intelligence Surface

Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures

Unconfirmed

No confirming evidence found yet from contracts, insider trades, or congressional activity

$$NUE▼ Bearish
Est. $-400,000,000$-800,000,000 revenue impact

What the bill does

Repeal of Section 338 of the Tariff Act of 1930 and nullification of related Presidential proclamations imposing tariffs

Who must act

Domestic steel producers that benefit from tariff protection on imported steel

What happens

Removal of tariffs on imported steel increases supply, lowering domestic steel prices and reducing margins for US producers

Stock impact

Nucor's steel production faces lower prices and increased competition from imports, compressing margins in its core steelmaking business

$$STLD▼ Bearish
Est. $-200,000,000$-400,000,000 revenue impact

What the bill does

Repeal of Section 338 of the Tariff Act of 1930 and nullification of related Presidential proclamations imposing tariffs

Who must act

Domestic steel producers that benefit from tariff protection on imported steel

What happens

Removal of tariffs on imported steel increases supply, lowering domestic steel prices and reducing margins for US producers

Stock impact

Steel Dynamics' steel production faces lower prices and increased import competition, compressing margins in its steelmaking operations

Key Legislators

Rep. Schneider, Bradley Scott [D-IL-10]

Related Presidential Actions

Executive orders & memoranda affecting the same sectors or companies

Exec OrderAug 26, 2026

Declaring a National Emergency to Secure the United States Bulk-Power System

This executive order declares a national emergency to restrict foreign-produced bulk-power system electric equipment that poses national security risks, prohibiting new transactions involving equipment from covered foreign entities and allowing the Secretary of Energy to impose conditions on existing equipment. It directs the Secretary of Energy, in coordination with multiple agencies, to identify, mitigate, and potentially replace risky equipment, and establishes a pre-qualification list for approved vendors.

proclamationAug 19, 2026

Temporary Suspension of Additional Duties to Offset Canadian Discrimination Against the Commerce of the United States with Respect to Alcoholic Beverages, Dairy, and Motor Vehicles

This proclamation postpones the effective date of previously imposed additional ad valorem duties (up to 50%) on Canadian imports of alcoholic beverages, dairy, and motor vehicles—originally set for August 19, 2026—to August 22, 2026, citing Canada's commitment to remove discriminatory practices. It uses authority under Section 338 of the Tariff Act of 1930, Section 604 of the Trade Act of 1974, and directs U.S. Customs and Border Protection and other agencies to suspend collection and implement refunds as needed.

proclamationAug 13, 2026

Adjusting Imports of Unmanned Aircraft Systems and Unmanned Aircraft Systems Components into the United States

This proclamation imposes a 100% ad valorem tariff on imports of unmanned aircraft systems (UAS) over 25 kg, those with thermal imagers, docking stations, and certain components, and a 25% tariff on UAS under 25 kg and other components, citing national security under Section 232 of the Trade Expansion Act. It also authorizes the Department of Commerce to establish an onshoring program offering preferential tariff treatment for companies that build new U.S. manufacturing facilities for UAS and components.

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